Bill S1798-2013

Relates to requirements for selecting the lowest responsible bidder for certain public works contracts

Relates to requirements for selecting the lowest responsible bidder for certain public works contracts; requires the submission of a questionnaire to the contracting agency and the comptroller.

Details

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  • Jan 8, 2014: REFERRED TO INFRASTRUCTURE AND CAPITAL INVESTMENT
  • Feb 1, 2013: COMMITTEE DISCHARGED AND COMMITTED TO INFRASTRUCTURE AND CAPITAL INVESTMENT
  • Jan 9, 2013: REFERRED TO FINANCE

Memo

BILL NUMBER:S1798

TITLE OF BILL: An act to amend the state finance law and the general municipal law, in relation to requirements for selecting the lowest responsible bidder for certain public works contracts

PURPOSE OR GENERAL IDEA OF BILL:

Section 1 adds a new section 135-b to the state finance law to establish responsibility standards for bidders of state public work contracts.

* Subdivision 1 defines a lowest responsible bidder to mean a bidder who submits the lowest bid and is not disqualified because its contractors or subcontractors failed to meet certain responsibility standards.

* Subdivision 2 requires each contractor and subcontractor for a contract over $100,000 to electronically submit a responsibility questionnaire to the contracting entity and State Comptroller who must maintain the information for review by contracting officials prior to awarding a contract.

* Subdivision 3 requires the questionnaire to identify the contractor's or subcontractor's principals, owners, officers and shareholders with 50 or more of the firm's stock, parent company and subsidiaries; type of business entity; identification of subcontractors; use of apprenticeship training; violations of state or federal prevailing wage, unemployment insurance, workers' compensation, environmental and other labor laws; failure to file tax returns or any tax liabilities or judgments; criminal history of business-related activity; contract sanction history including debarments; expertise; fiscal resources; and Proof of surety bonding required by law and workers' compensation.

* Subdivision 4 requires affirmation as to the truthfulness of the questionnaire.

* Subdivision 5 requires contractors and subcontractors to update the information in their questionnaires prior to being considered for another contract.

* Subdivision 6 disqualifies a bidder whose contractors or subcontractors have had a final determination rendered within the past ten years for non-payment of prevailing wages or unemployment tax, failure to secure workers' compensation, employee misclassification, or a criminal conviction for business-related activity; or fail to provide apprenticeship training; or fail to provide proof of a required surety bond and workers' compensation insurance. Bidders may also be disqualified who lack adequate expertise or fiscal resources. use unsafe equipment, submit bids disproportionately lower than the agency's estimate or are mathematically or materially unbalanced; fail to comply with state or federal requirements for using minority-owned, women-owned or disadvantaged businesses; present false or misleading information; or present other cause to question the capability and responsibility of the contractor and subcontractors.

Section 2 adds a new section 100-b to the general municipal law to establish similar responsibility standards and requirements for local public work contracts.

Section 3 establishes the effective date.

EXISTING LAW: State finance law section 135, general municipal law section 103 and other sections of state law require various state and local agencies and public authorities to award public work contracts to the lowest responsible bidder, but do not define the term "responsible."

JUSTIFICATION: Although state and local public work contracts above a certain value are required to be awarded to the lowest responsible bidder, the law does not define who is a responsible bidder. As a result, public work contracts are awarded using different standards throughout the State. While contracting officials may understand that contractors who fail to pay prevailing wages and payroll taxes or fail to provide workers' compensation are not responsible employers, award decisions are often driven by cost savings.

Under a 1993 Executive Order that is still current, state contracting agencies are required to use responsibility standards in selecting bidders and subcontractors for public work contracts (9 NYCRR 4.170). Agencies must consider a contractor's and subcontractor's past or current record of criminal conduct in business-related activity, compliance with labor and workers' compensation laws, use of registered apprenticeship training programs, good faith compliance with state and federal requirements to use minority and women-owned businesses, and adequacy of expertise and financial resources, among other factors. Currently, the State Comptroller uses an electronic vendor responsibility system that requires bidders to submit questionnaires with information relating to these responsibility standards in order to bid on state public work projects. In 1987, the New York City Council passed legislation establishing similar responsibility standards for local bidders which requires use of a computerized database that receives electronic questionnaires from bidders and their principals. New York City's VENDEX system is used by the City's agencies to determine the responsibility of bidders prior to awarding public work contracts. (NYC Administrative Code 6-116 . 2).

Many local jurisdictions in New York and elsewhere require contractors to use apprenticeship training programs to be eligible for a public work contract, including Rochester, the New York City School Construction Authority, and localities in Massachusetts. Illinois, Ohio and California. Apprenticeship training ensures a safer workplace and reduces injuries to unskilled workers which can create new costs and delays for public owners. The bill allows contractors and subcontractors to participate in either a federal or state registered apprenticeship program. New York has 867 registered programs for 56 trades: including 600 independent individual programs The federal program includes 14 additional trades. Between these two programs, New York's.contractors and subcontractors have diverse opportunities to satisfy their responsibility requirement to participate in an apprenticeship program.

The law's lack of responsibility standards creates an unlevel playing field for law-abiding contractors who submit higher bids because they rightly pay prevailing wages and provide apprenticeship training. The welfare and safety of employees are also at risk since they do not receive prevailing wages or workers' compensation benefits if injured on the job, and often lack necessary training because their employers do not participate in apprenticeship training programs. State and local governments are also impacted when workers bring home insufficient paychecks to support local businesses and pay taxes. Injured employees without workers' compensation or disability coverage may turn to public assistance. For the State, millions of dollars in uncollected revenues from unemployment and other payroll taxes are siphoned off into New York's underground economy.

The problems caused by irresponsible bidders have existed for decades in New York. In 2009, a joint legislative hearing was held to study these problems and determine whether the law should be changed. State and local officials, employee and employer organizations, and others with first-hand knowledge of the economic, social, and brick-and-mortar implications testified regarding best practices of responsible bidding for public work used in New York and elsewhere. Responsibility standards would also help reduce the frequency of litigation by unsuccessful bidders who often challenge the award decisions of local contracting officials. Responsibility requirements may also expand opportunities for qualified minority and women-owned businesses to perform public work contracts. The Senate Labor Committee reported these findings in a report on the hearing, "Responsible Bidding on Public Work: Improving New York's Lowest Responsible Bidder Law," January 2010.

The reforms in this bill to the State's lowest responsible bidding law will bring much-needed and long overdue reform to the way state and local agencies use public money to award public work contracts.

PRIOR LEGISLATIVE HISTORY: New bill.

FISCAL IMPLICATIONS: Modifications to existing state computerized vendor responsibility program expected to he

EFFECTIVE DATE: This bill would take effect 90 days after its enactment into law.


Text

STATE OF NEW YORK ________________________________________________________________________ 1798 2013-2014 Regular Sessions IN SENATE (PREFILED) January 9, 2013 ___________
Introduced by Sens. ESPAILLAT, HASSELL-THOMPSON -- read twice and ordered printed, and when printed to be committed to the Committee on Finance AN ACT to amend the state finance law and the general municipal law, in relation to requirements for selecting the lowest responsible bidder for certain public works contracts THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM- BLY, DO ENACT AS FOLLOWS: Section 1. The state finance law is amended by adding a new section 135-b to read as follows: S 135-B. LOWEST RESPONSIBLE BIDDER. 1. DEFINITION. FOR THE PURPOSES OF THIS SECTION, "LOWEST RESPONSIBLE BIDDER" SHALL MEAN THE PERSON, FIRM, CORPORATION, CONTRACTOR OR SUBCONTRACTOR OR OTHER ENTITY SUBMITTING A BID FOR A PUBLIC WORK CONTRACT FOR THE ERECTION, CONSTRUCTION, RECON- STRUCTION OR ALTERATION OF BUILDINGS WHO: A. SUBMITS THE LOWEST BID; AND B. IS NOT DISQUALIFIED ON ANY OF THE GROUNDS LISTED UNDER SUBDIVISION SIX OF THIS SECTION. 2. USE OF QUESTIONNAIRE TO DETERMINE RESPONSIBILITY OF CONTRACTORS AND SUBCONTRACTORS. A. NO PUBLIC WORK CONTRACT IN AN AMOUNT EXCEEDING ONE HUNDRED THOUSAND DOLLARS MAY BE AWARDED BY AN AGENCY, DEPARTMENT, PUBLIC AUTHORITY OR PUBLIC BENEFIT CORPORATION, OFFICE OR OTHER ENTITY OF THE STATE, TO THE LOWEST RESPONSIBLE BIDDER UNLESS EACH CONTRACTOR AND SUBCONTRACTOR FOR THE CONTRACT SUBMITS, AND THE CONTRACTING ENTITY REVIEWS, A QUESTIONNAIRE DEMONSTRATING ITS RESPONSIBILITY TO PERFORM THE CONTRACT. B. QUESTIONNAIRES MUST BE SUBMITTED ELECTRONICALLY TO THE CONTRACTING ENTITY AND TO THE COMPTROLLER WHO SHALL MAINTAIN THE INFORMATION IN AN ELECTRONIC DATABASE FOR REVIEW BY ANY STATE OR LOCAL CONTRACTING ENTITY THAT AWARDS PUBLIC WORK CONTRACTS.
3. CONTENTS OF QUESTIONNAIRE. THE COMPTROLLER SHALL PREPARE A UNIFORM QUESTIONNAIRE FOR USE BY STATE AND LOCAL CONTRACTING ENTITIES, WHICH SHALL REQUIRE EACH CONTRACTOR AND SUBCONTRACTOR TO PROVIDE THE FOLLOWING INFORMATION: A. THE NAME, ADDRESS AND TELEPHONE NUMBER OF ITS PRINCIPALS, OWNERS, OFFICERS, SHAREHOLDERS WHO OWN OR CONTROL AT LEAST FIVE PERCENT OF THE STOCK OF THE CONTRACTOR OR SUBCONTRACTOR, PARENT COMPANY AND SUBSID- IARIES. FOR PURPOSES OF THIS SECTION, THE TERM "AFFILIATES" SHALL INCLUDE EACH OF THE INDIVIDUALS AND ENTITIES LISTED IN THIS PARAGRAPH; B. THE TAXPAYER IDENTIFICATION NUMBER OR EMPLOYER IDENTIFICATION NUMBER, AND THE DUN AND BRADSTREET NUMBER; C. THE TYPE OF BUSINESS ENTITY, INCLUDING BUT NOT LIMITED TO CORPO- RATION, PARTNERSHIP, LIMITED LIABILITY CORPORATION, LIMITED PARTNERSHIP, JOINT VENTURE OR SOLE PROPRIETOR; D. THE NAMES AND ADDRESSES OF THE SUBCONTRACTORS PLANNED FOR THE PROJECT; E. THE USE OF REGISTERED AND APPROVED APPRENTICESHIP TRAINING PROGRAMS FOR THE PAST FIVE YEARS; F. ANY VIOLATIONS OF THE PREVAILING WAGE LAW UNDER ARTICLE EIGHT OF THE LABOR LAW OR THE FEDERAL DAVIS-BACON ACT BY THE CONTRACTOR OR SUBCONTRACTOR AND ITS AFFILIATES; G. ANY VIOLATIONS OF STATE OR FEDERAL LAWS RELATING TO UNEMPLOYMENT COMPENSATION, WORKERS' COMPENSATION, OCCUPATIONAL HEALTH AND SAFETY, EMPLOYEE MISCLASSIFICATION, EMPLOYMENT DISABILITY, EMPLOYMENT DISCRIMI- NATION, OR OTHER LABOR LAWS BY THE CONTRACTOR OR SUBCONTRACTOR AND ITS AFFILIATES; H. ANY VIOLATIONS OF STATE OR FEDERAL ENVIRONMENTAL PROTECTION LAWS BY THE CONTRACTOR OR SUBCONTRACTOR AND ITS AFFILIATES; I. ANY FAILURE TO FILE FEDERAL, STATE OR LOCAL TAX RETURNS, ANY TAX LIABILITIES, JUDGMENTS OR LIENS, AND VIOLATIONS OF AGREEMENTS OR LAWS UNDER WHICH A TAX CREDIT, TAX EXEMPTION, LOAN OR GRANT WAS AWARDED BY ANY FEDERAL, STATE OR LOCAL ENTITY BY THE CONTRACTOR OR SUBCONTRACTOR AND ITS AFFILIATES; J. ANY CRIMINAL CONVICTION, INDICTMENT, GRANT OF IMMUNITY OR CIVIL VIOLATION FOR BUSINESS-RELATED ACTIVITY, INCLUDING BUT NOT LIMITED TO BRIBERY, EXTORTION, FRAUD, RACKETEERING, CONTRACT BIDDING AND RESTRAINT OF TRADE BY THE CONTRACTOR OR SUBCONTRACTOR AND ITS AFFILIATES; K. CONTRACT SANCTION HISTORY INCLUDING FEDERAL OR STATE DEBARMENTS, SUSPENSIONS, FINDINGS OF INELIGIBILITY, OR DISQUALIFICATIONS FOR NON-COMPLIANCE WITH MINORITY-OWNED, WOMEN-OWNED OR DISADVANTAGED-OWNED BUSINESS REQUIREMENTS BY THE CONTRACTOR OR SUBCONTRACTOR AND ITS AFFIL- IATES; L. ANY PENDING INVESTIGATIONS FOR CRIMINAL OR CIVIL VIOLATIONS OF ANY STATE OR FEDERAL LAWS BY THE CONTRACTOR OR SUBCONTRACTOR AND ITS AFFIL- IATES; M. PROFESSIONAL LICENSE SANCTION HISTORY AGAINST THE CONTRACTOR OR SUBCONTRACTOR AND ITS AFFILIATES; N. EXPERTISE AND EXPERIENCE PERFORMING THE TYPE OF WORK REQUIRED UNDER THE CONTRACT; O. FINANCIAL CAPABILITY AND RELIABILITY INCLUDING FISCAL RESOURCES TO PERFORM THE CONTRACT, AND ANY BANKRUPTCIES WITHIN THE PAST SEVEN YEARS; P. PROOF OF ANY SURETY BOND REQUIRED BY LAW AND INSURANCE FOR WORKERS' COMPENSATION AND GENERAL AND PROFESSIONAL LIABILITY FOR THE PROJECT; AND Q. WHETHER HEALTH INSURANCE IS PROVIDED TO EMPLOYEES. 4. PENALTY. THE QUESTIONNAIRE SHALL BE SUBSCRIBED AND AFFIRMED AS TO ITS TRUTH, ACCURACY AND COMPLETENESS UNDER PENALTY OF PERJURY.
5. CHANGE OF INFORMATION ON QUESTIONNAIRE. ANY CONTRACTOR OR SUBCON- TRACTOR THAT HAS SUBMITTED A QUESTIONNAIRE ELECTRONICALLY UNDER THIS SECTION SHALL BE REQUIRED TO UPDATE ANY CHANGE IN THAT INFORMATION, IN A FORM ESTABLISHED BY THE COMPTROLLER, BEFORE THE CONTRACTOR OR SUBCON- TRACTOR IS CONSIDERED FOR THE AWARD OF ANOTHER CONTRACT. 6. AWARD OF PUBLIC WORK CONTRACT TO LOWEST RESPONSIBLE BIDDER. A. WHERE A PUBLIC WORK CONTRACT IS REQUIRED TO BE AWARDED TO THE LOWEST RESPONSIBLE BIDDER, NO CONTRACT MAY BE AWARDED TO A BIDDER IF ANY OF ITS CONTRACTORS OR SUBCONTRACTORS: (I) HAVE HAD A FINAL DETERMINATION RENDERED FOR A FAILURE TO PAY PREVAILING WAGES AND SUPPLEMENTS REQUIRED UNDER ARTICLE EIGHT OF THE LABOR LAW, A FAILURE TO SECURE INSURANCE REQUIRED UNDER ARTICLES TWO AND NINE OF THE WORKERS' COMPENSATION LAW, A FAILURE TO PAY UNEMPLOYMENT TAX REQUIRED UNDER ARTICLE EIGHTEEN OF THE LABOR LAW, OR A VIOLATION OF EMPLOYEE MISCLASSIFICATION, BY ANY FEDERAL OR STATE AGENCY OR COURT WITHIN THE PAST TEN YEARS; (II) HAVE HAD A CRIMINAL CONVICTION FOR BUSINESS-RELATED ACTIVITY, INCLUDING BUT NOT LIMITED TO BRIBERY, EXTORTION, FRAUD, RACKETEERING, CONTRACT BIDDING AND RESTRAINT OF TRADE BY THE CONTRACTOR, SUBCONTRAC- TORS OR ITS AFFILIATES WITHIN THE PAST TEN YEARS; (III) FAIL TO PARTICIPATE IN AN APPRENTICESHIP TRAINING PROGRAM APPROVED AND REGISTERED WITH THE STATE OR FEDERAL DEPARTMENT OF LABOR; OR (IV) FAIL TO PROVIDE PROOF OF ANY SURETY BOND REQUIRED BY LAW AND WORKERS' COMPENSATION COVERAGE. B. A CONTRACTING ENTITY MAY DETERMINE THAT A BIDDER IS NOT RESPONSIBLE AND NOT AWARD A CONTRACT TO THE BIDDER UPON FINDING THAT: (I) THE PROPOSED CONTRACTOR OR SUBCONTRACTORS FOR THE CONTRACT LACK ADEQUATE EXPERTISE, OR LACK THE FINANCIAL RESOURCES TO PERFORM THE CONTRACT OR SUBCONTRACT IN A TIMELY AND COMPETENT MANNER; (II) THE EQUIPMENT TO BE USED FOR THE CONTRACT IS NOT SAFE FOR OPERA- TION BY EMPLOYEES OF THE CONTRACTOR OR SUBCONTRACTORS, OR FOR THE PUBLIC; (III) THE CONTRACTOR, SUBCONTRACTORS OR ITS AFFILIATES HAVE COMMITTED A VIOLATION OF ANY LAWS UNDER PARAGRAPH F, G, H, OR I OF SUBDIVISION THREE OF THIS SECTION WITHIN THE PAST FIVE YEARS; (IV) THE BID SUBMITTED IS SO MUCH LOWER THAN THE AGENCY'S ENGINEER'S ESTIMATE THAT IT SEEMS UNLIKELY THAT THE BIDDER WILL BE ABLE TO PERFORM THE CONTRACT SATISFACTORILY AT THE PRICE BID; (V) THE BID SUBMITTED IS MATHEMATICALLY OR MATERIALLY UNBALANCED; (VI) A LACK OF GOOD FAITH EFFORT TO COMPLY WITH STATE AND FEDERAL REQUIREMENTS FOR USE OF MINORITY-OWNED, WOMEN-OWNED AND DISADVANTAGED-OWNED BUSINESSES; (VII) FALSE OR MISLEADING INFORMATION HAS BEEN PRESENTED TO THE CONTRACTING ENTITY IN CONNECTION WITH THE BID; OR (VIII) ANY OTHER INFORMATION WHICH RAISES SERIOUS QUESTIONS CONCERNING THE PRESENT CAPABILITY AND RESPONSIBILITY OF THE CONTRACTOR OR ANY SUBCONTRACTOR TO PERFORM THE CONTRACT. S 2. The general municipal law is amended by adding a new section 100-b to read as follows: S 100-B. LOWEST RESPONSIBLE BIDDER. 1. DEFINITION. FOR THE PURPOSES OF THIS SECTION, "LOWEST RESPONSIBLE BIDDER" SHALL MEAN THE PERSON, FIRM, CORPORATION, CONTRACTOR OR SUBCONTRACTOR OR OTHER ENTITY SUBMIT- TING A BID FOR A PUBLIC WORK CONTRACT FOR THE ERECTION, CONSTRUCTION, RECONSTRUCTION OR ALTERATION OF BUILDINGS WHO: A. SUBMITS THE LOWEST BID; AND
B. IS NOT DISQUALIFIED ON ANY OF THE GROUNDS LISTED UNDER SUBDIVISION SIX OF THIS SECTION. 2. USE OF QUESTIONNAIRE TO DETERMINE RESPONSIBILITY OF CONTRACTORS AND SUBCONTRACTORS. A. NO PUBLIC WORK CONTRACT IN AN AMOUNT EXCEEDING ONE HUNDRED THOUSAND DOLLARS MAY BE AWARDED BY ANY POLITICAL SUBDIVISION OR BY AN OFFICER, BOARD OR AGENCY THEREOF, TO THE LOWEST RESPONSIBLE BIDDER UNLESS EACH CONTRACTOR AND SUBCONTRACTOR FOR THE CONTRACT SUBMITS, AND THE CONTRACTING ENTITY REVIEWS, A QUESTIONNAIRE DEMONSTRATING ITS RESPONSIBILITY TO PERFORM THE CONTRACT. B. QUESTIONNAIRES MUST BE SUBMITTED ELECTRONICALLY TO THE CONTRACTING ENTITY AND TO THE COMPTROLLER WHO SHALL MAINTAIN THE INFORMATION IN AN ELECTRONIC DATABASE FOR REVIEW BY ANY STATE OR LOCAL CONTRACTING ENTITY THAT AWARDS PUBLIC WORK CONTRACTS. 3. CONTENTS OF QUESTIONNAIRE. THE COMPTROLLER SHALL PREPARE A UNIFORM QUESTIONNAIRE FOR USE BY A POLITICAL SUBDIVISION OR BY AN OFFICER, BOARD OR AGENCY THEREOF, WHICH SHALL REQUIRE EACH CONTRACTOR AND SUBCONTRACTOR TO PROVIDE THE FOLLOWING INFORMATION: A. THE NAME, ADDRESS AND TELEPHONE NUMBER OF ITS PRINCIPALS, OWNERS, OFFICERS, SHAREHOLDERS WHO OWN OR CONTROL AT LEAST FIVE PERCENT OF THE STOCK OF THE CONTRACTOR OR SUBCONTRACTOR, PARENT COMPANY AND SUBSID- IARIES. FOR PURPOSES OF THIS SECTION, THE TERM AFFILIATES SHALL INCLUDE EACH OF THE INDIVIDUALS AND ENTITIES LISTED IN THIS PARAGRAPH; B. THE TAXPAYER IDENTIFICATION NUMBER OR EMPLOYER IDENTIFICATION NUMBER, AND THE DUN AND BRADSTREET NUMBER; C. THE TYPE OF BUSINESS ENTITY, INCLUDING BUT NOT LIMITED TO CORPO- RATION, PARTNERSHIP, LIMITED LIABILITY CORPORATION, LIMITED PARTNERSHIP, JOINT VENTURE OR SOLE PROPRIETOR; D. THE NAMES AND ADDRESSES OF THE SUBCONTRACTORS PLANNED FOR THE PROJECT; E. THE USE OF REGISTERED AND APPROVED APPRENTICESHIP TRAINING PROGRAMS FOR THE PAST FIVE YEARS; F. ANY VIOLATIONS OF THE PREVAILING WAGE LAW UNDER ARTICLE EIGHT OF THE LABOR LAW OR THE FEDERAL DAVIS-BACON ACT BY THE CONTRACTOR OR SUBCONTRACTOR AND ITS AFFILIATES; G. ANY VIOLATIONS OF STATE OR FEDERAL LAWS RELATING TO UNEMPLOYMENT COMPENSATION, WORKERS' COMPENSATION, OCCUPATIONAL HEALTH AND SAFETY, EMPLOYEE MISCLASSIFICATION, EMPLOYMENT DISABILITY, EMPLOYMENT DISCRIMI- NATION, OR OTHER LABOR LAWS BY THE CONTRACTOR OR SUBCONTRACTOR AND ITS AFFILIATES; H. ANY VIOLATIONS OF STATE OR FEDERAL ENVIRONMENTAL PROTECTION LAWS BY THE CONTRACTOR OR SUBCONTRACTOR AND ITS AFFILIATES; I. ANY FAILURE TO FILE FEDERAL, STATE OR LOCAL TAX RETURNS, ANY TAX LIABILITIES, JUDGMENTS OR LIENS, AND VIOLATIONS OF AGREEMENTS OR LAWS UNDER WHICH A TAX CREDIT, TAX EXEMPTION, LOAN OR GRANT WAS AWARDED BY ANY FEDERAL, STATE OR LOCAL ENTITY BY THE CONTRACTOR OR SUBCONTRACTOR AND ITS AFFILIATES; J. ANY CRIMINAL CONVICTION, INDICTMENT, GRANT OF IMMUNITY OR CIVIL VIOLATION FOR BUSINESS-RELATED ACTIVITY, INCLUDING BUT NOT LIMITED TO BRIBERY, EXTORTION, FRAUD, RACKETEERING, CONTRACT BIDDING AND RESTRAINT OF TRADE BY THE CONTRACTOR OR SUBCONTRACTOR AND ITS AFFILIATES; K. CONTRACT SANCTION HISTORY INCLUDING FEDERAL OR STATE DEBARMENTS, SUSPENSIONS, FINDINGS OF INELIGIBILITY, OR DISQUALIFICATIONS FOR NON-COMPLIANCE WITH MINORITY-OWNED, WOMEN-OWNED OR DISADVANTAGED-OWNED BUSINESS REQUIREMENTS BY THE CONTRACTOR OR SUBCONTRACTOR AND ITS AFFIL- IATES;
L. ANY PENDING INVESTIGATIONS FOR CRIMINAL OR CIVIL VIOLATIONS OF ANY STATE OR FEDERAL LAWS BY THE CONTRACTOR OR SUBCONTRACTOR AND ITS AFFIL- IATES; M. PROFESSIONAL LICENSE SANCTION HISTORY AGAINST THE CONTRACTOR OR SUBCONTRACTOR AND ITS AFFILIATES; N. EXPERTISE AND EXPERIENCE PERFORMING THE TYPE OF WORK REQUIRED UNDER THE CONTRACT; O. FINANCIAL CAPABILITY AND RELIABILITY INCLUDING FISCAL RESOURCES TO PERFORM THE CONTRACT, AND ANY AUDITS OR BANKRUPTCIES WITHIN THE PAST SEVEN YEARS; P. PROOF OF ANY SURETY BOND REQUIRED BY LAW AND INSURANCE FOR WORKERS' COMPENSATION AND GENERAL AND PROFESSIONAL LIABILITY FOR THE PROJECT; AND Q. WHETHER HEALTH INSURANCE IS PROVIDED TO EMPLOYEES. 4. PENALTY. THE QUESTIONNAIRE SHALL BE SUBSCRIBED AND AFFIRMED AS TO ITS TRUTH, ACCURACY AND COMPLETENESS UNDER PENALTY OF PERJURY. 5. CHANGE OF INFORMATION ON QUESTIONNAIRE. ANY CONTRACTOR OR SUBCON- TRACTOR THAT HAS SUBMITTED A QUESTIONNAIRE ELECTRONICALLY UNDER THIS SECTION SHALL BE REQUIRED TO UPDATE ANY CHANGE IN THAT INFORMATION, IN A FORM ESTABLISHED BY THE COMPTROLLER, BEFORE THE CONTRACTOR OR SUBCON- TRACTOR IS CONSIDERED FOR THE AWARD OF ANOTHER CONTRACT. 6. AWARD OF PUBLIC WORK CONTRACT TO LOWEST RESPONSIBLE BIDDER. A. WHERE A PUBLIC WORK CONTRACT IS REQUIRED TO BE AWARDED TO THE LOWEST RESPONSIBLE BIDDER, NO CONTRACT MAY BE AWARDED TO A BIDDER IF ANY OF ITS CONTRACTORS OR SUBCONTRACTORS: (I) HAVE HAD A FINAL DETERMINATION RENDERED FOR A FAILURE TO PAY PREVAILING WAGES AND SUPPLEMENTS REQUIRED UNDER ARTICLE EIGHT OF THE LABOR LAW, A FAILURE TO SECURE INSURANCE REQUIRED UNDER ARTICLES TWO AND NINE OF THE WORKERS' COMPENSATION LAW, A FAILURE TO PAY UNEMPLOYMENT TAX REQUIRED UNDER ARTICLE EIGHTEEN OF THE LABOR LAW, THE UNEMPLOYMENT INSURANCE LAW, OR A VIOLATION OF EMPLOYEE MISCLASSIFICATION, BY ANY FEDERAL OR STATE AGENCY OR COURT WITHIN THE PAST TEN YEARS; (II) HAVE HAD A CRIMINAL CONVICTION FOR BUSINESS-RELATED ACTIVITY, INCLUDING BUT NOT LIMITED TO BRIBERY, EXTORTION, FRAUD, RACKETEERING, CONTRACT BIDDING AND RESTRAINT OF TRADE BY THE CONTRACTOR, SUBCONTRAC- TORS OR ITS AFFILIATES WITHIN THE PAST TEN YEARS; (III) FAIL TO PARTICIPATE IN AN APPRENTICESHIP TRAINING PROGRAM APPROVED AND REGISTERED WITH THE STATE OR FEDERAL DEPARTMENT OF LABOR; OR (IV) FAIL TO PROVIDE PROOF OF ANY SURETY BOND REQUIRED BY LAW AND WORKERS' COMPENSATION COVERAGE. B. A CONTRACTING ENTITY MAY DETERMINE THAT A BIDDER IS NOT RESPONSIBLE AND NOT AWARD A CONTRACT TO THE BIDDER UPON FINDING THAT: (I) THE PROPOSED CONTRACTOR OR SUBCONTRACTORS FOR THE CONTRACT LACK ADEQUATE EXPERTISE, OR LACK THE FINANCIAL RESOURCES TO PERFORM THE CONTRACT OR SUBCONTRACT IN A TIMELY AND COMPETENT MANNER; (II) THE EQUIPMENT TO BE USED FOR THE CONTRACT IS NOT SAFE FOR OPERA- TION BY EMPLOYEES OF THE CONTRACTOR OR SUBCONTRACTORS, OR FOR THE PUBLIC; (III) THE CONTRACTOR, SUBCONTRACTORS OR ITS AFFILIATES HAVE COMMITTED A VIOLATION OF ANY LAWS UNDER PARAGRAPH F, G, H, OR I OF SUBDIVISION THREE OF THIS SECTION WITHIN THE PAST FIVE YEARS; (IV) THE BID SUBMITTED IS SO MUCH LOWER THAN THE ENGINEER'S ESTIMATE THAT IT SEEMS UNLIKELY THAT THE BIDDER WILL BE ABLE TO PERFORM THE CONTRACT SATISFACTORILY AT THE PRICE BID; (V) THE BID SUBMITTED IS MATHEMATICALLY OR MATERIALLY UNBALANCED;
(VI) A LACK OF GOOD FAITH EFFORT TO COMPLY WITH STATE AND FEDERAL REQUIREMENTS FOR USE OF MINORITY-OWNED, WOMEN-OWNED AND DISADVANTAGED-OWNED BUSINESSES; (VII) FALSE OR MISLEADING INFORMATION HAS BEEN PRESENTED TO THE CONTRACTING ENTITY IN CONNECTION WITH THE BID; OR (VIII) ANY OTHER INFORMATION WHICH RAISES SERIOUS QUESTIONS CONCERNING THE PRESENT CAPABILITY AND RESPONSIBILITY OF THE CONTRACTOR OR ANY SUBCONTRACTOR TO PERFORM THE CONTRACT. S 3. This act shall take effect on the ninetieth day after it shall have become a law.

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